$Davido Meme Coin Highly Risky, Says SEC

The Nigeria’s capital market regulator, Security and Exchange Commission (SEC) has warned against investing in $Davido meme coin or any other kind of meme coin in the country, highlighting that doing otherwise was at the investor’s risk. LEADERSHIP recalls that popular Nigerian singer, David Adeleke, a.k.

a Davido, had recently ventured into cryptocurrency in May, partnering with Phantom and Solana to launch $DAVIDO, whose market value surged past $10, and ranked number one on the DEX screener within 24 hours after its launch. However, in an official statement released by SEC on Friday, the commission disclosed that its attention has been drawn to $Davido meme coin which is “allegedly linked to the popular Nigerian singer, David Adedeji Adeleke AKA Davido.” The SEC emphasised that meme coins lack fundamental values and are highly speculative.



The commission warned that meme coins have no capital representations and is not intended to serve as a medium of exchange, pointing out that it does not fall within the SEC’s regulatory purview. “Generally, meme coins are cryptocurrencies inspired by memes and internet jokes. They are often envisaged as a fun, light-hearted cryptocurrencies promoted through a social media community and sometimes through celebrity endorsements.

“Meme coins are also NOT intended to serve as a medium of exchange accepted by the public as payment for goods and services, or as digital representation of capital market products such as shares, deb.